How to Start A Side Hustle: The Comprehensive Guide

Some people make all the money they will ever need. Good for them! They worked hard for that success. The rest of us, however, work a job we love but don't make as much money as we would like. So, what are we left with? Investments or starting a second business. I'm simplifying it, but here's how to start a side hustle (even if you've never started one before!)

The need for a side hustle could grow out of a goal, such as saving for a house or paying down debt, or it simply could be a way to create a little breathing room in a budget.

In fact, most millionaires have an average of seven income streams.

And if you think about it, this makes sense.

They make gobs of money, so it makes sense that it comes from more than one place. Me? My blog used to be my side hustle until I turned it into my full-time income stream.

Now that I'm blogging full-time, I'm currently on the hunt for a new side hustle, which got me thinking about what it takes to make money on the side, so I put together this guide.

Here it is in all it's glory: how to find a side hustle idea, how to find your first clients, how to steadily grow your side hustle, and tools to help manage your side biz all in one place in a neat, pretty package.

How to Start A Side Hustle: The Comprehensive Guide

The opportunity for income growth fell into my lap in 2013 when I was approached by a coworker. We were both working at a tech start-up (she as a designer, me as a writer) and she had a thriving design firm she was running on the side that is now a big-time agency in Atlanta.

She wanted to add content services to her business and approached me about doing SEO for a design client since I'd been doing so much of it at my day job.

It then dawned on me in a beautiful instant—I have marketable skills other than just my wit and charm!!

And from there my “side hustle” was born.

Step #1 – Determine What Your “Side Business” Will Be

Often our biggest and best side hustles are in our back pocket already. If you really sit down and think, it's pretty easy to come up with a handful of side hustle ideas. 

The biggest question: What are you already doing that you could monetize or package in a different way in order to make side income?

The second question: Is there a need for this business?

Still stumped on ideas? Here's more:

Some of these are legit “business ideas” and others are just ideas to make some quick cash, fast like with online surveys or using services like Swagbucks. 

Step #2 – Start Small (a.k.a Ask People You Know)

I started my blog in 2012 because I wanted to write. I never intended to start a side hustle outside of the small income my blog made at the time, but when a graphic designer friend asked if I could do some copy for a website she was building for one of her clients, I said yes.

……And that work turned into a referral to another client of hers and suddenly I had 2-3 clients I was working with on a monthly basis.

If you're looking to start a side business start small and do two things:

a) figure out what product or service you want to sell

b) tap your personal network.

I have a friend who now runs a lucrative side business baking elaborate cakes and pies (which she used to do for free.)

Sometimes all it takes is a mention or a friendly email, “Hey I'm trying to start a small side business as a writer/cake baker/astronaut/whatever and am looking for clients. Please pass my name along if you know of anyone in need!”

I've been working with my social media assistant and graphic designer for nearly two years now and I couldn't live without them. I don't even worry about tax time because I have such a great accountant who gets how complicated my work, side business, and real estate situation can be.

My point is that I found all these people by asking around and getting great word of mouth referrals from family, friends, and my online network, which you should leverage FIRST before you turn to job boards, craigslist, or Elance. Don't be shy, people love to recommend others who do great work for them.

It may also be worth it to do a job for a discount or freebie for a friend or family member in exchange for a glowing testimonial you can use for your website or marketing initiatives. (If you're doing a service based side hustle.)

Step #3 – Do Great Work, Deliver a Fantastic Product, or Create a Memorable Experience

This is the most crucial step. You need to kill yourself doing/giving a great job/product/experience for these first few clients. It is off of this business that all referrals and positive word of mouth will be built. Not that you don't always do a great job, but be especially awesome when you're just starting out!

Step #4 – Building A Website is Really How to Start a Side Hustle

Everything is online nowadays. It's how the world works, how now-referral clients will find you, and how referral clients will vet you.

Even if you are side hustling under your own name, you need a website: either yourbusiness.com or yourpersonalname.com so people can find you, links to your work, information about pricing and services, and testimonials from happy clients all in one place.

Nowadays, it takes three clicks to build a website, so there really isn't an excuse for you not to have an online, digital footprint.

I mean, you Google your Tinder dates. And you likely wouldn't go out with someone who didn't show up online anywhere. Would you trust your hard earned dollars and business to someone who didn't even have a website (this is why when you're starting out you should attempt and work with PEOPLE YOU KNOW!)

Anyway, back to building a website.

Seriously, three clicks. I use HostGator to build my websites, (although there are many other hosting platforms) but I like HostGator because it takes three clicks to get my domain name uploaded onto a hosting platform, and the wordpress app installed. You can read my tutorial on how to do all of this here. 

Your side hustle website can be as simple, or elaborate as you want.

Click here to see my tutorial guide on how to build your own WordPress website with Hostgator.

Start earning like a boss A.S.A.P. Click here to enroll in Financial Best Life’s FREE course, Side Hustle Success

Step #5 – Start Networking

With your website up and rolling, it's time to get out there and start networking.

Mastermind groups, your local chamber of commerce, professional associations: these are all rife with opportunities to meet people and sell your services. Just be sure to go armed with confidence, a smile, a business card, and be able to sum up what you do in three sentences or less. Not networking can be a huge mistake!

Once you've networked and hopefully get a business card from a potential lead, then you can email a follow up about how you'd like to work with their company.

Step #6 – Add a “Hire Me” Page on Your Blog and Social Media Channels

If you are already online via a blog or are active on social media, simply adding a “Hire/Work With Me” page or putting out the word over social channels is all it takes!

Your business is so new and young, it takes awhile to get word of mouth out. The important thing to remember when starting a side hustle is that you have to ask for business when you're starting out.

Step #7 – Protect Yourself (Get an LLC)

You can choose to be a sole proprietor and cash checks/pay taxes under your name which many freelance writers do. Still, many go the route of LLCing themselves in order to protect their assets in the (rare) instance of a legal dispute with a client.

Since I own my own home, and also have renters who pay me, I chose to LLC my freelance writing and content business to keep it separate from my personal/house expenses.

It also makes me seem incredibly legit. And since I have staff that I pay (graphic designers, staff writers) and have to prepare W-9's for them, it just makes sense to LLC and get my own EIN. You can read more about what it takes to LLC a company here.

Step # 8 – How to start a side hustle that leads to success? Get the Right Tools

Dropbox – I love Dropbox. I use it to back up all of my computer files, but I also create a separate folder for each client, so I always have a copy of their work, our contract, and any other important particulars ready and available.

I've definitely always been a “keep a paper copy” kind of gal, but Dropbox makes it so easy to access and share files, I'm quickly becoming a convert.

When you side hustle, particularly if you are in a service-based side business, you'll need to save work agreements, invoices, receipts, graphics for your business, templates, you name it. It's best to keep a copy of this in some type of cloud-based software so in case your computer dies, (and you haven't backed up) you're prepared.

Separate Checking Accounts for Your Side Business – Trust me, things will be a lot easier with your personal finances if you keep your side hustle, full-time gig money, and money for spending and paying bills SEPARATE. You can set up another account at your bank or apply for a new account (I like a separate account at a separate institution so I don't “touch” that money as often).

More FREE Tools for Starting a Side Hustle

HelloSign – A rule to live by when you start a business or taking on freelance clients: get everything in writing. Because of this, you may need to execute documents or work agreements and send them to clients for signature. I love HelloSign, which is free for the first three documents you send each month. It is so much easier than sending to a client, asking them to sign and scan back, and then having to sign and scan on my end.

Accounting/Invoicing Software – Previously I just used paypal invoices, which was fine, but having a separate accounting software (I like Freshbooks- it's awesome!) helps provide a layer of legitimacy, and rather than reconcile my business expense at the end of the quarter, it is now automated through the software.

Separate Folder in your Inbox – As with any business, you'll need to make some purchases for your businesses, which you can then write off on your taxes. For me, since I make a lot of purchases online, I have a separate folder in my inbox to folder these transactions, this way they're in one safe place for the rest of the year and ready for me when tax time rolls around.

Want to create a profitable blog as your side hustle? Get the “Beginner Blog Accelerator” course packed full of all the tools you need to make your blog a success!

Step #9 – Set up an Email List to Keep Marketing

Whether you are a freelancer, sell products online, or do one-time gigs here and there, it's important to keep an email list of your old and prospective clients and buyers. This way you can email them consistently or from time to time to pitch for work or remind them of what an excellent service and value you provide.

It doesn't have to be big or fancy, and not every side hustle needs a blog or super active content marketing strategy. But every side hustle/business does need a way to keep in touch with those who are buying your products or services.

How to Start a Side Hustle – My Biggest Business Lessons

 

Below are just a few of the biggest lessons I learned when I first started my blogging/freelance writing side hustle.

“Fake it till you make it.”

I'm not a large agency, but I've implemented a lot of the policies and procedures of some I've worked with in the past to add an air of legitimacy to my solopreneurship. Clients didn't balk, in fact, they've taken me more seriously and I've been able to substantially raise my rates while providing added value.

Lean on Your Support Groups

I honestly don't know how I would have gotten by the last three months without the mastermind brainstorms, Facebook groups, and lunches with other solopreneuers. It's been great for venting, as well as getting fast answers to some newbie questions I've had from others who have worn the path ahead of me. It has also helped me feel connected to something in the days and weeks when I've felt impossibly adrift without an outside-the-house office and structured schedule to anchor me. (For productivity hacks I've found helpful, click here.)

Continuing Education 

Even the folks who have business degrees can tell you that no schooling prepares you for the real life experience of running your own business. As such, it can get very easy when things are going “just okay” to let contentment be the enemy of growth. I've definitely fallen into this trap the last three months.

  • I haven't been pitching clients because I wasn't sure how to have those sales conversations.
  • I wasn't implementing policies and procedures that made me look like a grown up.
  • And my invoicing and banking practices were just so-so.

What do I do to get better? I look to outside resources for help. The internet is a hive of activity and super-relevant content which makes learning about the subjects I need to improve upon brainless. I've been relying heavily on the Office Depot Business Solutions center (their article on the science of selling helped me craft my latest Beehive Content promotional newsletter!), and the information shared on blogs for creative entrepreneurs (Betty Means Business and Careful Cents are two of my favs!)

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Having an extra income stream can be a total financial game changer. Check out our step-by-step guide on how to start a side hustle and start bringing home more money!

P.S. Learn more about making money with a side hustle!

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  • TheLazyScholar89
    February 27, 2015 at 3:23 pm

    This is such a great post. I’ve been trying (unsuccessfully) to side hustle for a few years now, but I’ve also never given 100% to it. It’s difficult to work when you have two under three and no daycare or sitter. Now that they are both enrolled, I’m going to give it a go again with more effort. My goal is an extra $500 a month by December 2015. Wish me luck!

    • Lauren Bee
      March 1, 2016 at 2:52 pm

      Good, good luck! You’ll get there in no time 🙂

  • Broke Millennial
    October 30, 2014 at 6:39 pm

    Love all this! And thanks for the link 🙂

  • Cat@BudgetBlonde
    October 29, 2014 at 1:35 pm

    Can you link to the post about the LLC? I didn’t see the link. Great post thanks!

  • Holly@ClubThrifty
    October 29, 2014 at 8:01 am

    I like how you start this post with, “I’m the worst!”

    Seriously though- it is really easy to start a blog. I hate technology and manage fine. Most people could figure it out =)

    • Lauren Bowling
      October 29, 2014 at 1:51 pm

      Agreed. Although most of the money I make now is from freelance clients who found me through my blog and not through actual blogging itself. Definitely exploring more affiliate advertising as well.

  • Jayson @ Monster Piggy Bank
    October 29, 2014 at 6:08 am

    I should probably explore more side hustles. Thanks for the post!

  • Kim
    October 28, 2014 at 1:56 pm

    Excellent tips ! Hope your side hustle continues to grow!

  • Charlotte
    October 27, 2014 at 8:10 pm

    Great info in this post, Lauren. Good luck growing Beehive – the website looks awesome.

  • Nick Loper
    October 27, 2014 at 6:28 pm

    Thanks for the shout Lauren!

  • Giulia
    October 27, 2014 at 11:59 am

    Thanks for this post!!!

  • Michelle
    October 27, 2014 at 10:01 am

    Thanks for the information Lauren!

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